different sources different charts

Discussion in 'Technical Analysis' started by ADX_trader, Aug 26, 2002.

  1. After comparing different charts from different sources, I found there were many differences among them. :( It could lead to different decisions. In some charts a bar might not break a moving averages but did so in other charts. Is it a problems that we have to live with? Does anyone know which source is the most reliable one? Can we get data feed directly from the CME or other exchanges?
  2. OOOF! Welcome to another of the little bugaboos that plague trading. I too run into discrepancies between different data sources (for end-of-day data on stocks, in my case). Most of the problems are uncorrected misprints (spikes in the high or low due to faulty/rolled-back trades). I also see minor shifts in the closing price (presumably from late reports from market makers). I don't even want think about what day traders have to put up with.

    And the impact affects more than just entries and exits. Backtesting is also corrupted by corrupted data. If the price data used in backtesting contains dynamical artifacts that do not occur in real life, then it is possible to create a system that works well on data, but fails in trading.

    Although I would love to find a perfect data source, I suspect that this is just something every trader must live with. (I hope someone can correct me on this). As a coping strategy, I would suggest that the real goal is to find the most popular data source (even if it is not the most accurate). The most popular data source would provide the best insight into what most traders are likely to do -- its better to tap into the shared delusion, then to have accurate data that nobody else is reacting to.

    Just my 2 cents (actually better make that a 2 cent profit target and 1 cent stop loss! :) )